Economic profits are
A. total revenue minus explicit and implicit costs.
B. total revenue minus implicit costs.
C. total revenue minus accounting costs.
D. total revenue minus explicit costs.
Answer: A
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If national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is
A) 5. B) 0.75. C) 0.20. D) 0.15.
Excess capacity arises when firms cannot sell all of their output at the current market price
a. True b. False
If the value of net exports is negative, then
A. imports exceed exports. B. exports equal imports. C. exports exceed imports. D. imports are zero.
Which of the following is not a desirable characteristic in an economy?
A. rapid increase in the general price level B. low unemployment C. growing per-capita output D. population growing slower than output